2018 saw a big increase in the number of major infrastructure projects related to the transport sector, perhaps as a consequence of this, the number of transport and logistics start-ups in Africa is also increasing, along with significant investor interest. We take a look in more detail to understand the impact of digital on the transport and logistics sector.
Infrastructure spending is increasing, 38% of which is focussed on transport improvements
The total number of infrastructure projects across the continent reached 482 in 2018 with increases seen in all regions of the continent. 38.6% of projects related to the transport sector, followed by Real Estate (22.8%), Energy & Power (13.7%) and then Shipping & Ports (7.5%).
Transport infrastructure is vital for the African economy but presents start-ups with challenges to scale
The African Development Bank estimates that 80% of goods are transported by road and 90% of passengers. It also estimates that only 50% of the population of Africa have access to a road that can be used in all seasons.
The logistics and transport sector are attracting big investment for start-ups
Since 2011 the number of transport and logistics start-ups has grown by 55% CAGR while the volume of investment has grown by 203.9% CAGR over the same period.
This report was first published in September 2019.
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